861.77 Chinese Eastern/306

The Ambassador in Germany (Schurman) to the Secretary of State

No. 4823

Sir: Supplementing telegram No. 146 of August 13, 2 p.m. on developments in the Chinese Eastern Railway conflict as known in [Page 300] Berlin, I have the honor to report that the Soviets were duly acquainted by the Germans with the fact that the Chinese Minister in Berlin had asked their advice respecting a “face-saving formula” which would settle the conflict. The Chinese Minister was aware that the Russians would be so informed.

The Foreign Office understands that the Chinese have made direct approaches to the Russians from various quarters with a view to opening negotiations and that the Russians have returned first negative answers and then none at all.

During an informal conversation yesterday with a member of this Embassy, the principal official at the Foreign Office in chargé of Russian and Far Eastern affairs said that the conflict appeared to have entered upon what would probably prove to be a tedious period of oriental jockeying and bargaining. The Russians wished their demands fulfilled before formal negotiations began. The Chinese wished to begin negotiations, after which they might be ready to concede a great deal since it would not then be so apparent to their people that they had had to surrender.

It was the opinion of this official that one way or another a peaceful solution would in the end be found. Neither side was ready to fight. As was known, the German Government had delivered a Chinese note of protest to the Soviets and a Soviet note of protest to the Chinese. No doubt there would be more mutual recrimination but not a war.

Conditions on the Chinese-Russian frontier were undoubtedly disturbed and to some extent dangerous but the reports of troop concentrations and armed conflicts had to be accepted with the greatest reserve. A telegram had just come from the German Legation in China saying that there were no such numbers of Chinese troops on the frontier as some recent press reports would indicate.

Over against this view of the German Foreign Office it may be well to add that in a personal letter received this morning by a member of the Embassy, Mr. Walter Duranty, the New York Times correspondent at Moscow, speaks very definitely of a still continuing danger of war.

I have [etc.]

Jacob Gould Schurman